When darkness turns to light...

...It ends tonight, it ends tonight.

Just a little insight won’t make things right…

It’s too late too fight, it ends tonight…

It’s been a long time coming…

Starring:

- the Company – my current employer,

- the New Factory – hope the future is bright out there,

- Dude – my boss (despite the superior – subordinate relationship, he is for me like a mate, we are on the same wavelength),

- Commander-in-chief – the boss of my boss,

- the Soulmate (mentioned here many times, a fellow colleague, despite being a close friend knows nothing about the existence of this blog)

- and me, for a short moment the hub of the universe ;-)

January 2013

The first, emotion-driven, attempt to change the job. By offering a pay rise and promotion, the Company manages to keep me in. More than a year after, despite all the bad stuff, I do not regret that decision.

May 2013.

First cracks on the glass appear. The Company refuses to further pursue relationship with one of its large customers on less favourable (lower income) terms and then terminates provision of services to one of the largest and most reputable customers in Poland. The relationship, established less than a year earlier, has not fetched adequate profit. Nobody bothers to think this was a door-opener for being a meaningful player in a certain market segment. No other competitor on the whole market would dare to take such step.

August 2013

Two female colleagues announce they are pregnant. Both will give birth in March 2014 and are due to return from maternity leaves in spring 2015…

September 2013

The Company decides to exit another relationship with a large customer. We entered it for prestige, rather than for income…

October 2013

Dude arranges for a substitute for pregnant girls. The new colleague will work for us as part of secondment for half a year. Soon she turns out to be anything but productive. After two weeks I begin counting down days until the end of March when her secondment ends. Months with her in the team are a rough ride…

November 2013

A guy who left the Company a few months ago calls to persuade me to join his team in a company in which he took office as director upon the departure. The prospective employer is government-controlled and is not a part of international corporation, meaning doing business is subject to political influences and I would not use English everyday. Both reservations are a huge drawback for me. I turn down the offer.

My motivation is in the slump, particularly after several people I have worked with are laid off…

December 2013

In this month and some time earlier other important customers decide to quit or decrease scopes of relationships with the Company. No new ones are acquired to take place of them, resulting in idle capacity…

January 2014

I’m faced with another proposal of a new job. Having weighed up all pros and cons, I decline it, despite realising the current job is dead-end. Another customer terminates its co-operation, this time for operating reasons (the service provided proved unreliable for too many times).

February 2014

Dude hires a new girl. Very self-focused and inefficient. Dude, even if manages to delegate tasks, fails to enforce execution.

I find a job opening from posted by the New Factory. It seems appealing, but for the time being, I decide not to apply. I don’t want to earn a reputation of a person who turns up for interviews and then kicks up a fuss.

Another strategic customer severs the relationship with the Company, as competitors offer it lower prices for services.

Applications presenting opportunities to provide a profitable service for two prospective customers are negatively opined by decision makers…

During annual appraisal, I tell Dude I don’t fee a future for myself in the Company and cite reasons why (see above). He tells me has no doubt I would find a job somewhere else and I’m replaceable. He seems to really believe there must be a breaking point at which someone realises the Company needs to be turned around. I am of the opinion by the end of 2015 our business segment will have been wound down.

March 2014

No new customer acquired since the beginning of the year and another one lost. There are days when I am at the loose end most of the time… The only upside is that the end of colleague’s secondment draws near.

The Soulmate is determined to find a new job. Our plan is that she leaves first, I soldier on, but demand a substantial pay rise and quit a few months later.

7 April 2014

In my LinkedIn box I find a message from a recruiter from the New Factory relating to the job opening I saw in early February. If they approach me, not the other way round, at least there’s no risk of being perceived as the one who kicks up the fuss. In response I send my CV.

8 April 2014

A recruiter from the New Factory invites me for a meeting two days later.

10 April 2014

In the morning I call Dude and tell him I’ll be late as the French electronics in my car packed up in the rain and I ended up in a garage and I’m waiting to get the car fixed. (Megane has had a track record of no single breakdown since the wipers mechanism breakdown in May 2013)

In earnest, the new job is not perfect (none would be), but reasonable. Scope of duties and role in the process is very similar to what I do at the Company. My salary expectations are exorbitant, so I’m prepared to adjust down my demands.

17 April 2014

I receive the letter of intent from the New Factory. They are unwilling to beat down my expected salary … I respond positively.

22 April 2014

Members of management board having decision-making authority all take seven days off to take fortnight-long holidays and do not delegate their authorities, which results in decision-making paralysis. If a customer turns to us with a request regarding the terms of service, it has to wait until first week of May. At any other firm in the industry such event is unthinkable. This probably is a part of pursuit of “Priority for clients” strategy…

23 April 2014

In a newsletter sent out to all employees, CEO of the Company delineates a strategy which assumes customers from the business line I deal with will be “acquired selectively”. If I can read well between the lines, it means withdrawal from this business line and inexorable redundancy for me… By the way, how does the CEO imagine execution of such strategy, if reputation of the Company with the target has already been spoiled?

24 April 2014

I am designated to co-ordinate a project. It is bound to fail, but I politely agree to take up all the tasks…

25 April 2014

Dude hands out missives containing the information on annual bonus. What a golden handshake! Seriously, again I feel very bad about hiding my intention to leave…

28 April 2014

Needless to say no new customers have been acquired since the beginning of 2014 and loss of two other by the end of May looms large.

29 April 2014

My bank account is credited with the bonus. Now no one can change the discretionary decision on granting it, nor take back the transfer order. Dude and I are dealing until late afternoon with absurdities unknown to other companies. When I knock off he sighs and says: ‘it’s been a crazy day, I hope tomorrow will be uneventful’.

30 April 2014

I’m damn stressed-out, I can’t focus on work, my hands quake. Dude turns up to the office late. He’s angry and refuses to talk to us. After a quarter he slightly cheers up and reminds us of holiday planning.

I ask him to come with me to a meeting room for a face-to-face conversation and when we get there, without further ado I hand in my notice. Dude is kind of crestfallen but keeps a cool head. His first reaction is absolutely correct – he tries to renegotiate my salary; to no effect. I quickly retort if this was only a matter of money, I would tell him straightforwardly I want more and we would probably strike a deal. I point out if the Company was forging ahead, I would connive at all the stuff that fucks me up and get ahead with it, but when I see it being wound down, I see no other choice. Dude asks, whether I wouldn’t consider carrying on my misery until girls return from maternity leaves. I refuse and further argue there is no point in staying. I explain we can either embrace the way the Company is run or reject it and I can see no in between. We can either shape up or ship out. I’ve been shaping up for some time, now there’s the opportunity to ship out… The Company has worn me down… I feel under my skin Dude thinks the same, as most people do, but he’s far from having the comfort of speak it out. Dude refuses to countersign my notice for the time being. He has to talk to Commander-in-chief.

We return to our desk. Dude most probably informs Commander-in-chief by e-mail about my decision. At some point Commander’s merry face turns red. Hard to guess whether he’s stumped, shell-shocked, frightened, bemused. He asks Dude to have a face-to-face chat immediately. They’re away for half an hour which seems to last ages. They come back. Commander-in-chief is livid. Dude now asks the Soulmate to come with him. Next thirty minutes wear on. I still wonder what the hell they are talking about.

Two hours after the bomb was detonated, Dude countersigns my notice. Within next hours things get back to normal. It’s good the atmosphere seems to have cleaned up. I’ll work here till the end of July (one third of that time I’ll be on holiday, but never mind), so making life harder makes little sense.

Just like in choosing a person you will spend the rest of your life with, there’s no point of raising the bar too high when looking for a job. In both cases you run a serious risk of not finding a partner or employer. The New Factory meets three criteria I have set: it is a meaningful player in the industry, keeps growing and its profits incline as well, I will use English in everyday work and I will have the chance to develop and learn, as it is involved in doing businesses the Company shies away from. Apart from this, I don’t expect it to be perfect. As everywhere, corporate structure and people will be more and less tolerable, but at least it offers prospects the Company lacks…

Pod Mocnym Aniołem – film review

If you have ever wondered what amount of filth a director can squeeze into a single film and your supposition was ‘finite’, watching the most recent Wojtek Smarzowski’s film (literally titled ‘Under the strong angel’; the title should tell you nothing) should put you straight. And if watch the fifth consecutive film directed by the same guy and the filth is dosed up copiously, it simply bores you stiff. Mr Smarzowski’s first film, ‘Wesele’, was a wry and brilliant depiction of shortcomings of parochial, provincial Poland. “Dom zły’ niftily took viewers back to the dark side of Poland in late 1970s and during the martial law. I found ‘Róża’ tedious and gave up on watching it around the middle. In ‘Drogówka’ the director and screenwriter (both roles fulfilled by Mr Smarzowski in the flesh) went over the top and the newest film, which premiered early this year, is another example of overkill, suggesting it is time to draw a line.

Having read the first reviews, I resolved not to bother to watch it in the cinema and put back the moment I familiarise with the film until it is available online. Watching such abhorrent film at home gives a tremendous comfort of being able to pause or stop playing or omitting some scenes if in need and an even bigger comfort of not having to observe reactions of audience, spanning from hissing in disgust to outbursts of uncontrollable chuckling.

Mr Smarzowski’s films are featured with unique naturalistic style, something I have grown fed up with. How many times can you watch crass intercourses (easily recognisable, as the couple always make characteristic moves and moan)? What is the pleasure in seeing inebriated folks urinating, defecating or throwing up uncontrollably and then still wearing grimy clothes? Is it necessary to watch several similar scenes in which delirium-stricken alcohol addicts quiver? Too much off-putting form, too little substance, plausibly intended to leave the viewers shell-shocked…

Denying the film the substance is unfair, although at times a viewer can wonder whether the film has a coherent plot. The plot, at times moving on without rhyme or reason and its patchiness reflects perception of reality by a compulsive drinker. The world is seen with eyes of people whose lives have been ruined by alcohol and the picture is dejecting.

For the sake of fairness, it has to be underlined not only craving for alcohol can make people stoop very low. Each and every compulsion: drugs, gambling, shopping, computer games and all other, can be turn an addict’s and their relatives’ lives upside down. Each spoils relationships, deprives of money, destroys careers and reputation. So why alcohol?

Because it has always been a part of Polish identity. Tipples have been with Poles when they were happy and when they were sad, in moments of glory and in moments of despair, Alcoholic drinks have come in useful in celebrating successes and in drowning sorrows. Teetotallers as a matter of principle were dubious, accused of being sneaks. Alcohol has added courage and has helped break the ice; helped to hit it off and let go inhibitions. This appeal made it indispensable for addicts…

Some of the guests of film’s premiere in January 2014 declared they feel like not reaching out for alcohol any more. I find such reactions excessive. Alcohol, as many other stuff, if used in small amounts and infrequently, does little harm. As long as you do not sit behind the wheel when intoxicated, can control what you do and remember what you have done (and do not regret doing it) and your body does not signal you have drunk too much, everything is in the proper order.

Oddly enough, Mr Smarzowski’s films, despite oozing with muck, are generally praised and receive favourable reviews and good publicity. The chap beyond all doubt is gifted and has guts to tackle gruelling topics in his films, but if all of them have so akin murky setting and in form are akin to one another, at some stage one can be sick of it… Despite the general dislike for recent creations of the uncanny director, I cannot pledge not to watch his next film. No matter how repugnant it is, I will probably not resist the temptation to see it out of sheer curiosity. But for heaven’s sake, may the next film contain more substance and diminish in form…

1984 revisited

Early last week, I felt an irresistible temptation to reach out for a second time for the George Orwell’s book. I first and last read it on the spur of the moment in the summer of 2006 and just like with The Beautiful Mind, I remembered little from the first encounter with the work. For no apparent reason until the beginning of the last part, I was deluding myself that the book would have a happy ending, something totally unimaginable in the communist nightmare depicted in George Orwell’s last remarkable piece of writing.

While delving into the book and taking in its purport much better than when I was eighteen, I wondered what had inspired George Orwell to think up horrifyingly bleak picture of the future world. Was there any premise in 1947 or 1948, when the book was committed into paper, why the world order could develop into a gloomy picture of communist tyranny? Three years have elapsed since the end of WW2, half of the very war’s duration. Great Britain was drowning in penury, Europe was divided into two political spheres of influences, Germany was divided into four occupation zones, in each Western European countries communist parties were meaningful, although not main players in political arenas, ordinary people were fearing the onset of the third, much more cruel world war. Was the threat of communism spilling over Western swathes of Europe so conceivable?

Around that time communism was still spreading and robustly competing capitalism. The Korean war about to break out in 1950, the communist party took over rule in China in 1949, Fidel Castro got hold of power in 1959, Stalin was still alive and mighty. At that time it could be said the peril of communism spreading far and wide was as serious as never before. Shortly after the warning George Orwell wanted to give to the world was published, the peril began to slowly wane. Stalin died in 1953, subsequently the totalitarian system in the Soviet Union and in the Soviet bloc countries set off to gradually thaw out. There was no possibility to break away from the fetters of the dreadful ideology, but its intensity was less callous. In the meantime in other parts of the world setting up communist regimes was in overdrive. The communism was to hold up well for a thousand years. For (above all) economic reasons it failed to stand the test of time much faster. In countries not being a part of Soviet bloc the system began to fall into pieces gradually. The Soviet bloc disintegrated in 1989, after a decade of progressing decomposition. These days the hard-core communist regime has its last bastion in North Korea and despite economic misery, the isolated country does not seem likely to break free.

George Orwell surely drew inspiration from the darkest side of Stalinist purge of 1930s, yet the cruel regime of Oceania outstripped the pre-WW2 Soviet Union. The abhorrent vision of totalitarian regime puts status of Poland when it was a part of the Soviet bloc in interesting perspective. Although Poland was not a free country, the oppressive system could have suppressed Poles much more. Władysław Pasikowski, director of Jack Strong, in his interview for Polityka weekly, attempting to weigh up whether Mr Kuklinski’s liaison with CIA was a treason, tackles the problem with a question, whether People’s Poland was an independent country or the 17th Soviet republic. Although we do not concur in assessment of Mr Kuklinski’s deeds, Mr Pasikowski very wisely points out Poland was neither a sovereign country, nor a part of the Soviet Union. It was somewhere in between. Between the white and the black there always is a wide area, with different shades of grey. In People’s Poland ordinary people, who led ordinary lives could feel they enjoyed some degree of freedom, while the statesmen and all the people active in top politics at that time were much closer to the Soviet Republic. Fortunately, in authoritarian Poland after 1956 individuals were given some autonomy and even if their lives were miserable, they at least could feel safe, provided they did not stick their neck out. From the perspective of Stalinist Russia, so much, from the perspective of today’s free Poland, so little…

On one of wintery evenings, being at the loose end, I indulged in watching Dziennik Telewizyjny, the main TV news broadcast in the state-controlled television. One of early January 1987 issues contained two long reports of Poland and United States struggling onslaught of winter. Footages from Poland showed snowploughs pushing away snowdrifts, trucks coming over with supplies of food to villages cut off from the rest of the world, news of heat supply being uninterrupted by winter, etc. In the meantime in the United States winter wreaked havoc to all the infrastructure – airplanes stranded, airports closed, drivers freezing in their cars on motorways, people falling over on slippery pavements and breaking limbs, cars skidding on icy roads. The message put over between the lines: look, winter brings the capitalist country to its knees, while we, despite adversities, are moving on! I was kind of impressed by the efforts of propaganda-engineers, at least their output was more clever than crass reports of “exceeded five-years plan of shoe-polish production”.

It took me two evenings to read the book from cover to cover. The next masterpiece of 20th century literature to swallow will be the Master and Margarita, to be revisited after over nine years.

Jerzyk, shut your mouth up!

Poland is a country is which an individual is faced with lack of prospects, in sport, in business and in private life; where the youth of the nation study only to flee the country, where the up-and-coming sportsmen train in sheds – this is the picture of Poland painted a few days ago in a outburst of wrath by Jerzy Janowicz, a young and talented Polish tennis player, after he dropped out of the Davis cup.

Then he went on with his rant against journalists, who interrogated him why he had failed to live up to their expectations. He advised them to live through the sacrifices all the successful sportsmen have to make and only then start criticising and having expectations, since those entitled to have them are those who had committed themselves to help him pursue his career.

The heavy coin the tennis player dropped sonorously has two sides. On one side, I am not taken aback by his irritation over expectations, bad form, etc. I am also fed up when bystanders who have little notion about the effort sportsmen take to pursue a victory and all the mental pressure they are under begin asking about causes of someone’s poor performance, mistakes, etc. At some stage, successful sportsmen become a country’s teddy bear and whenever for any reason they do not come up to exorbitant expectations, everyone holds it against them and dissects the letdown.

The other story is how he slated Poland as a country. I am far from flag-waving and national-pride kind of patriotism, but as a young citizen of Poland, I felt outraged. Not because, as some claim, he said what everyone knows but leaves unsaid for sake of good manners, but because his tirade was an utter twaddle! The course of his career best disproves his lousy statements. His parents sacrificed a lot to assist him in developing his tennis skills and invested thousands of zlotys in him and until now the outlays have paid back several times. He is damn lucky to be one of the most talented players to stand out and make international career. Overwhelming majority of his peers had no chance to get that far and so what? Should the government, with money collected from taxes, fund trainings for everyone who claims to have makings of a future sport star?

My indignation stems from my beliefs. I am of the opinion a man’s fate lies mostly in their own bare hands and blaming “the system” (government, schooling, labour market and all the factors that somehow affect one’s success) is taking the path of least resistance. If you want to reap, you need to sow. Sports career is like setting up a business. Many businesses go bust and very few grow big and successful. In many cases what entrepreneurs invest goes down the drain. Tough luck, such is the life!

As another young and successful Pole I would never, ever have the temerity to slam my homeland so unkindly, even in a private conversation. Cross my heart, I do not think Poland is a country where youngsters have no prospects, although I hear it often and whenever I take issue, my interlocutors ask me whether I am not out of my senses. Cross my heart, I do see a reason why I would need to seek opportunities to pursue my career abroad, if there ample in Poland. Cross my heart, I owe what I have attained to my own sheer hard work, skill (something that is inborn but if not exploited, is useless) and luck (once I happened to be in the right time and in the right place, I knew such opportunity might not repeat and seized it), not thanks to connections or bribery. And I believe decrying the homeland in public is deplorable!

Nevertheless, as a representative of the young generation I need to express my concern over prospects the most talented and best educated university graduates see for themselves. The biggest ambition of the gifted young people is to work in corporations where the play the role of a cog in the machine. I also am one of them and see the simple reasoning driving youngsters there. Corporations give some degree of security. Although you can be fired, if you work well, it is less probable than bankruptcy if you run your own firm. You get a fixed, decent and timely paid salary. Rules of the game, although not always fair, are at least clear. This is just a concern, I sadly admit I cannot see myself in any other role, so I am even unable to come up with any constructive criticism. Long live the corpo-world. Roll on Monday!

Sorts of workmates

Following up on the last week’s post of job (or rather employer-related) lassitude, I compiled a list of personalities I have come across during my stint where I am who, not necessarily in large measure, have tended to throw me off balance. It does mean I wish to besmirch some types of behaviours or attitude towards work, nor claim I am free of all the shortcomings. Treat the wry depiction below with a pinch of salt. Despite some irritating traits, most of my workmates who served as prototypes for the list below are actually likeable :)

Piece-of-office-furniture. Office seems to be their first, not second, and preferable home. They spend more time there than they need to, most probably to show others how ardently they work or to avoid coming back home where bothersome spouse and vociferous offspring wait. Spending up to 12 hours a day in the office does not translate into higher efficiency, as they work long, but not smart. The only drawback for fellow workmates is that they expect other employees to keep late hours as they do and do not realise other people can have different priorities than spending evening at work.

Conceited. Always knows best, is wiser than others and thinks others are more stupid than they are. With time their intuition is often proven wrong, yet they always find excuses for why they missed by a long shot. Despite huge expertise hard to be persuade and standing their ground as a matter of principle.

Martyr. Tends to send e-mails in the middle of the night or during weekend just to show their workmates how committed they are and how much of their private time they sacrifice for the welfare of the company. Whenever you remind them what they were supposed to do, they barrage you with a litany of what they have on their plate and how busy they are. At the end of the day, their efficiency is not higher than average.

Irreplaceable. Frequently underlines how crucial for the company they are and how all the stuff would fall apart if they quitted. Unfortunately lacks courage to hand in a notice and provide empirical evidence for their assertions.

Scatterbrained. Might be good in setting up new relationships with clients, but fails to look after them, once they are established. Forgetful. Expects other people to take care of their affairs. As an employee might be precious for the company, but needs to be surrounded by more responsible persons…

Deadline-challenger. Whenever reminded of a tight deadline, they always respond there is a plenty of time and they will make it before deadline. Then when the eleventh hour comes up, they race against time and often lose the race. Not my style…

Nouveau-riche. Usually in their early thirties, after two or three promotions, with at least one earned in pre-crisis era, when bargaining power in negotiating salaries was much higher than today. Grew in provincial Poland in a poor family (I have nothing against such people as long as they behave normally) and shows off their first big money. Their ostentatious wealth is often debt-financed and most income is spent on lavish consumption intended to impress other people. Nothing condemnable, but not my style.

Dirty-linen-washer. Particularly intolerable in open plans where everyone hears everyone. Often tells stories from their private life that should not reach wider audience. Marital problems, break-up with partner or sexual habits are not what everyone around needs to listen about.

Trumpeter. Does little but talks a lot (and says little). Spends more time talking how much they do (blowing their own trumpet) and hence has little time to put in sheer hard work. Because of superb publicity they can make, they are often highly evaluated by supervisors, yet many managers have become immune to people who create less value than they claim to.

Office-politics fan. Knows everyone well, if familiar with what other people are like and generally in what is going on in the company. Knows who to flatter, who to avoid and how to conform to a specific situation. The only drawback is that they spend too much time devising office politics strategies than on sheer hard work.

Silent and dubious. Seldom opens their mouth. Is taciturn, rarely participates in conversations in which many people are engaged, but often listens in. Maybe this has appearance of a whistleblower obsession, but I am not fond of such types.

Lacking self-preservation instinct. Totally does not realise their position is unsustainable, unless a change is brought about, i.e. if no there is no work, their fruits of their work do not cover the costs of their position. Doing little and earning much even in a self-focused corporation is a short-term survival strategy, but in the long run, is dead-end.

Sponger. Akin to the aforementioned type, but lives off the backs of workmates. Knows a team needs to generate some value, but does everything to have possibly smallest share in that pie.

Beauty. Young, attractive female, aware of her charm and knowing how to use it. Does not have to make a step too far to achieve what she wants by only simpering with pliable males. I developed a strategy of playing a game with such women. I join it, pretend to fall for her and when she thinks the deal is nailed down, I back down ruthlessly.

Delegating. Their key activity is assorting tasks among other employees who are not their subordinates. I recall an e-mail from such person, written in a very professional language, stating we are in the point, where something has been achieved, further actions required are these and those, persons responsible for execution are these and those, deadlines are as set. In effect, tasks have been delegated and they will oversee. Quite annoying, but beware; this was the only person out of the prototype who has been fired, for their attitude towards work.

Not-give-but-take. Typical Polish entitlement advocate. They deserve a pay rise, appreciation from managers, an hour-long lunch break and to pop out for two hours to town when they need to handle something, but refuse to take up additional tasks or stay overtime. Ignores a simple rule that you cannot have a cake and eat it. Either you are a mediocre employee and you salary and position are also mediocre, or you stand out and then hold out for more.

And for the very end, my drawbacks at work:

- I tend to get hot-tempered,

- the tone of my voice is sometimes so unpleasant that my interlocutor can think I am ordering them about,

- what is worse, the tone of my voice is even condescending or patronising,

- I happen to claim I am right without double-checking facts backing my assertions,

- I am generally quite strict when I take steps to receive what I need to receive.

Oversized

Imagine an office (urząd) without petitioners (petenci). Imagine a school without pupils. Imagine a hospital without inpatients, or a health centre without the ill. A mind-boggling absurdity? From the times I was a student, I recall a conversation between two student office (dziekanat) workers both claiming their job would have been much nicer, if only they had not need to deal with students (ta nasza praca byłaby całkiem fajna, gdyby nie ci studenci). So much nicer would be a job of a clerk if only those obtrusive people did not come around. A work in a hospital would be much more rewarding, if personnel did not have to take care of those horrible patients. A work in school would be marvellous, if only teachers did not have to deliver classes to rowdy brats.

Smacks of absurdity? Not really. Each organisation, as it grows, goes through certain stages of development. With each consecutive one its structures are bigger, so they require more control, reporting, paperwork, etc. With time a profit-oriented organisation, i.e. a business no longer allocates all its resources towards attaining its core goal which should be making money. With time each company builds ancillary structures, which at first enhance specialisation and support front-line units, so that everyone can focus on doing their bit. As more time goes by, in order to keep the business together, companies set up more reporting / oversight / control functions. As the process carries on, fewer employees are focused on serving customers (i.e. looking after sources of revenues) and more employees are focused on dealing with internal affairs of an organisation. When the company is bigger, internal oversight structure are vital for keeping it going in line with a certain strategy, yet the question of proportions between so called front-office, middle-office and back-office is justified. The more of a company’s resources are directed towards back-office functions and the less towards front-office, the more mature the company is. But is it more efficient?

The term diseconomies of scale has not been coined without a reason. In an organisation’s development there is a point at which the organisation grows to unmanageable proportions, i.e. is too big to be run efficiently. This happens both in the government sector (which is more prone to such distortions) as well as in private sector, yet there probability of diseconomies of scale is strongly positively correlated with size. Overgrown bureaucratic structures no longer need customers to be have something to deal with. At the highest stage of this “internal focus” middle- and back-office staff can not see the forest through the trees. They no longer realise serving the customer who feeds them should be a top priority. The become so pre-occupied with processes, procedures, reporting and other self-oriented stuff that they forget those are the customers thanks to who they can earn a livelihood.

Oddly enough, such self-oriented organisations survive, albeit rarely thrive on the market. When an organisation reaches the highest stage of development (when it does not need customers to move on) it already has established a leading market position (often might be a monopolist) and superior reputation and switching costs for customers are high. These factors allow such company not to strive for many new clients and put little effort in retaining the existing ones. Moreover, front-office functions are never neglected. Employees who bring the company the bacon are property remunerated for securing revenues essential to cover costs of the bureaucratic structures. The inertia in such huge organisations can last years and such wicked corporations do not fall apart. Senior executives often realise what is wrong and launch initiatives aimed at reinstating customer focus in organisations they run. The frequent upshot is that an organisation focuses on pursuing the programme rather than on customers…

Some time ago I took part in a series of workshops aimed at streamlining and leaning process in my company. As the workshops developed and participants came up with new ideas, the picture which emerged showed clearly the customer is actually necessary to feed us with documents we could hand over from one to another, fill in to several systems, create reports, etc. The role of a customer is boiled down to a creature which sets the bureaucratic machine in motion. Once it gains momentum, it busy with document circulations, internal analyses and reports so that the customer drops to the bottom of its list of priorities. One day when the group of workshop participants was in top form and devised plenty of ideas how to improve workings of our company, I held back for a moment, examined what had been put forward and without second thought asked an inconvenient question “but where’s the room for customers in what we design?”. I poured cold water on my fellows, the silence came into the room. They all stared at me. I realised I could have overstepped boundaries, as dissenters are not flattered in corporate capitalism. To my surprise, no one denounced me, my remark turned out to be quite productive and changed the course of works during the next workshops.

After over three years of working in the same place, I am growing weary of my current job. Or to be precise, I have had enough of my employer and how my company is run. I do take pleasure in what I do and perform my duties zealously, so the symptoms do not signify burn-out, but I am frustrated with prospects my employer and I have, or rather do not have. My employer is a part of a huge corporation with operations in most countries in the world. My diagnosis of the problem they have with their Polish recalcitrant subsidiary is that the operating environment here differs from those in other CEE countries. The corporation refuses to compromise and adjust its doing-business guidelines to specifics of the Polish market. They fail to recognise the simple rule “shape up or ship out”. They neither shape up, as consistently they fail to discern the Polish market is not malleable and will not alter to meet their expectations, nor have the courage to divest of the defiant business which totally does not fit the rest of the corporation. Customers are lost, profits are shrinking and prospects of turnaround are miniscule, because the organisation is so big that the decisions as effect of which the company could get up from its knees would have to be taken by decision makers who could not point Poland at the map, not to mention basic understanding of peculiarities of the Polish market. Thus my job is dead-end, but owing to inertia of overgrown corporations I will hold it down for a while. In the meantime I keep looking for a better one, mindful of the risk of falling out of a frying pan into the fire. As long as I am not redundant, the pressure is limited. And if they decide to fire me, there is golden parachute waiting for me by the end of this year. If it accompanies the lay-off, putting me out of misery looks like an appealing option.

When spring takes over

Apparently the timing of my end-of-winter pronouncement last week could not have been better. The weather has turned astonishingly clement as for the last decade of March and brought temperature typical for late April rather than period near spring equinox.

I took a day off on Friday to make the most of almost-summer-like weather. Instead of staring at computer screen in the office, I indulged in some rearrangements and tidying-up in the garden and around the house and vacuum-cleaned the car after winter. The temperature on Friday afternoon topped +22.4C but failed to beat the temperature record for March in Warsaw, set exactly 40 years earlier, of +23.0C. The coldish wind was taking the gloss of the warmth and unless you moved a lot, T-shirt only was insufficient to keep you comfortable.

Yesterday the next dose of physical exercise was taken in. Swimming pool in the morning, then, after a break for exam study portion, I dragged the bike out of the garage, to get it ready it for the cycling shakedown. Temperature was slightly lower than on Friday, but the wind eased off and sunshine did not cease, hence the weather could rarely be more perfect for taking a bike for a first ride.

I resolved to venture through the nearest forest. After covering some distance up the cycling path running parallel to ul. Puławska, I spotted a huge traffic jam, far worse than what I experience there around 7:00 a.m. on my way to the factory. In early mornings on weekdays the traffic is dense, but not nearly stationary as yesterday in the afternoon. Truth be told, deep down I felt some sort of superiority to miserable folks stuck in their tins, while I, pedalling on my bike, had the advantage of overtaking them almost effortlessly. This year I should finally try out cycling to P&R Ursynów on days when I can dress to work casually and the weather is conducive (no rain and not too warm, nor too humid). I realise my requirements are exorbitant, but the whole sport has to be sweat-proof. If I cycle slowly and it is not too warm, chance of breaking sweat are minimised.

Curious too see what had brought cars to standstill, instead of turning to ul. Jagielska, I carried on straight ahead to behold a police car, a trailer car and motorcycle lying on the road. There was no ambulance in sight, so I thought the motorcyclist had just fallen over. As I found out later at home, the motorbike rider had collided with an Opel Astra and had been taken to hospital with some injuries almost two hours before I turned up at the scene. I must openly admit I have little tolerance for raging motorcyclists. Surely, there are good and bad motorcyclists, just as there are considerate and inconsiderate drivers. Those who ride according to rules usually do not grip my attention, while those speeding, showing off riding on rear wheel only or slaloming between cars in pace dangerous even if drivers peek frequently in mirrors spoil reputation of motorbike users’ community and making them being dubbed “organ donors”.

Having passed the accident spot, I turned right onto ul. 6 Sierpnia. Now a puzzle. What event which had taken place on 6 August (and in what year) is the street named after? The tarmack ends after several hundred metres and you enter the forest. The path being the extension of ul. 6 Sierpnia was quite empty, I came across some walkers, runners and other cyclists, but the perpendicular path, formally ul. Moczydłowska, running from Kabaty to ul. Jagielska, was chock full of people.

I marked my presence in this place for the first time, so I was absolutely unaware I would run across such farm around the northern end of the forest. Judging by photo only, I would safely bet it could have been taken somewhere beyond Suwałki, as it resembles farmlands I saw in those areas. In fact, the dilapidated, but not derelict farm lies less than a mile away from one of the poshest districts of Warsaw, Kabaty and had it not been a part of forest nature reservoir (which entails stringent restrictions in development = probably no chance of getting a planning permission + a gate preventing vehicles from reaching the property) would have been worth millions.

As the forest ends, you come across a technical track that runs from the Radom rail line to the maintenance depot of the Warsaw underground. Railcars rarely can be witnessed here, but this is where most avid spotters could spot new underground trams being shunted towards the depot. Yesterday, the track fulfilled a role of a leisure route.

Before turning around to set off home, I cycle around the western end of Kabaty. Development in this area is dominated by detached and terraced houses, blocks of houses prevail in the distance, closer to the underground line. The residential area is a wonderful place to live. It combines rural character of vicinity of the forest and proximity of infrastructure (underground station and hypermarket less than a mile away from there). All the virtues of living here are reflected in property prices which are likely to resist a conceivable overall downward trend in Warsaw (it is notable when property prices decline, the biggest adjustment affect worse locations, while those better tend to hold strong). Upon looking at property advertisements, I estimated I am some one and a half million PLN short of moving here, assuming the cheaper option, i.e. buying a plot of land, dividing it in two and putting up a semi-detached house, rather than purchasing a house on secondary market. Never hurts to have dreams, even if for the time being they are totally out of reach.

Winter timeline 2013/14

The departing winter is definitely the mildest of those documented in form of weather diary posted on this blog. On average, it was warmer than average and less snowy than average, but its proper stint, lasting some three weeks, gave us all a rough ride. Double-digit frosts persisted for the whole third decade of January, gusty wind brought down perceivable temperature even to ghastly –30C. We had two incidences of freezing rain in temperature of some –5C, but did without heavy snowfalls. Much earlier than in 2013, the time to declare the winter is over, has come.

I must sadly admit my camera, although in full working condition, has spent last months in a drawer, even with a battery disassembled. I somehow did not feel the need to take snap, did not carry it along, hence the timeline will only be supplemented with links to fellow bloggers’ posts, evidencing spells of weather from the recent months.

Hot summer swiftly gave way to gloomy and chilly autumn. First frost was recorded on 4 October 2013, when temperature in Warsaw dipped to –2.0C. Second and third decade of October were in turn warmer than average, with month-time high of +21.7C on 27 October 2013.

November 2013 went down in history of weather in Warsaw as almost frost-free. First sub-zero temperatures were noted in the last week of the month and not a single snowflake was witnessed. Temperature averaged out +5.6C, 0.2C colder than a year earlier and notably warmer than long-term average of +3.2C.

4 December 2013

Snow begins to fall around 9 p.m. and doesn’t melt, some 0C.

5 December 2013

Not a trace left after yesterday’s snow. Slightly above zero over the day. A first winter storm is setting in.

6 December 2013

Ghastly attack of winter. Temperature slightly below 0C, wind chill of –10C, gusty wind, snow showers and occasional blizzards. 4 centimetres of white powder manage to paralyse the traffic, leaving roads and pavements treacherously slippery.

7 December 2013

Still blustery, yet the hurricane is wearing off. Little or no flurry, temperature above zero over the day. The storm has wreaked havoc to several households across the country. Mine has not had full electricity (2 out of 3 phases not working) for the second day.

8 December 2013

Glorious winter. Sunshine from dawn to dusk, no colder than –5C, but not above freezing as well. Full electricity supply resumed at 3:40 p.m. Snowfalls begin in the evening

9 December 2013

+4C in the morning. No trace of yesterday’s snow. Gloomy autumn returns.

10 December 2013 – 15 December 2013

No point in writing a diary. Every single day is grey, short, miserable and, weather-wise, depressing – slightly above zero all the time, fogs lingering, not a single sunbeam lighting up the shortest days of the year.

16 December 2013 – 19 December 2013

Frosty at nights, above zero during short days. More frequent than intermittent spells of sunshine lift spirits. No sign of winter in long-term forecasts.

20 December 2013

Gloomy…

21 December 2013 – 22 December 2013

For a change, sunny, with southerly winds and day-time high of +5C on Saturday and +8C on Sunday. Only length of the day reminds it’s winter actually.

23 December 2013

One day when it gets dull, despite no sunshine (and no rain as well) it is well above zero.

24 December 2013 – 26 December 2013

The annual weather pattern is a Christmas thaw – last year after wintery pre-Christmas weekend (double-digit frost, cloudless skies) temperature shot up from –4C on Christmas Eve morning to +5C in the evening. Last Christmas with actual winter (both snow and subzero temperatures) was observed in Warsaw in 2002.

2013 Christmas will be not only one of the warmest (day-time high nearing +10C), but high temperatures, unlike in most years, are accompanied by clear skies and sunshine. Lovely ;-)

27 December 2013 – 30 December 2013

What’s the point in writing the winter timeline, if there’s no winter???

31 December 2013

-5C in the morning… Chill makes itself felt after several abnormally warm days. Still, it’s not the proper winter.

December 2013 was very warm. Average temperature in Warsaw was +2.4C (vs. long-term average of –0.7C). Much warmer than a year ago, but 0.2C colder than in 2011 and 1.6C colder than record-warm December 2006. Stats:

- month-time high: +10.5C on 28 December 2013 (unsurprisingly, around Christmas)

- month-time low: –5.5C on 10 December 2013 (as for the low, very high)

- the warmest day: 26 December 2013 (daily average of +7.4C, funnily enough, 26th day was also the warmest in December 2012, when temperature averaged out +5.6C)

- the coldest day: 10 December 2013 (daily average of –2.5C, while on the colder day in December 2012 it was –12.5C)

1 January 2014 – 11 January 2014

Over that period:

- temperature did not drop below 0C (except for five hours between 3:00 a.m. and 8:00 a.m. on 2 January 2014, when temperature hovered between –2C and 0C),

- not a single snowflake fell,

hence no winter.

12 January 2014,

above zero, yet windy and sleet making any outing unpleasant. A gentle spell of winter sets in.

13 January 2013 – 14 January 2014

Temperature fluctuating around zero, yet without falling snow. Wind chill makes it a few degrees below zero.

15 January 2014

In the morning – ugly autumn, +1C and drizzle. Over the day rain turns into snow and temperature drops. In the evening it’s –3C and some three centimetres of snow linger on the ground. Not really ghastly. Roads are properly salted and traffic is no worse than usual, but pavements are a different story – most resemble ice rinks… One more time pedestrians are second category citizens, inferior to motorists.

16 January 2014

Yesterday’s snow has settled, not a single snowflake drops from the sky. Below zero. Winter, mild. Flurry in the evening.

17 January 2014

Three centimetres of white powder have accumulated overnight. Roads are anything but clear. Over the day temperature rises from –3C to slightly above zero around midday. Snow turns into icy rain, then regular downpour. Fortunately, the ground has not frozen up and fallen water does not freeze as well.

18 January 2014

Another snowfall-free, foggy day with subzero temperatures.

19 January 2014

How I wish abundant flurry could come over only during weekend. First little snow blizzard hits on Sunday morning and despite –5C turns into freezing rain. This rare phenomenon happens when a warm mass of air comes over the colder one. Ghastly, roads and pavements are damn slippery.

20 January 2014

-6C and freezing drizzle. Infrequent spell of weather wreaks havoc with transport – roads and pavements covered with black ice, cars users who keeps their vehicles in the open air have to scrape a thick layer of ice off windows, some have problems getting into cars. Some trains are stationary due to iced wires.

21 January 2014

-8C all the time, wind chill of –20C. Grisly, but at least nothing precipitates from the sky. A cold snap is in the offing.

22 January 2014

Double-digit sub-zero temperature for the first time this winter, -11C in the morning, three degrees warmer during the day. No snow, less gusty wind.

23 January 2014

Chill getting serious. –15C at the crack of down, temperature peaking in single-digit frost in the sunny afternoon, plummets after sunset, back to –15C at 10 p.m.

24 January 2014

Day-time low of –17C, but around 4 a.m. By the time most people set off from their warm dwellings, temperature goes up to –16C. In the afternoon it fails to creep up above –10C. Glorious sunshine all the time, but chilly wind persists.

25 January 2014

This might be the coldest morning this winter. –18C in Warsaw, one degree colder in the suburbs. Still five degrees warmer than in early February 2012. Sunny all day. Snow showers to come on the next day, while frost should turn single-digit. Two major scenario for early February. Either balancing between thaw and mild winter or record-low temperatures blown in by powerful Siberian high pressure system.

26 January 2014

Flurry began yesterday in the evening and continues for the while day. Slightly warmer – around –10C. In such temperature snow is light and crisp so clearing is easy.

27 January 2014

Flurry in the morning. Flurry in the evening. Between –10C and –7C, wind chill below –20C.

28 January 2014 – 31 January 2014

Weather pattern stays the same – between –15C and –10C at night, day-time highs between –10C and –5C, gusty wind intensifying the perception of chill (even below –30C, the cold is piercing). Intermittent light or not snow showers add to misery… I’ve had enough… On the last day of the month, snow depth reaches 21 centimetres.

January 2014 was normal. Average temperature in Warsaw was –2.6C (vs. long-term average of –1.9C). Mean temperature fails to exhibit contract between first 10 days of the month when temperature was abnormally high (average temperature +4.1C) and last 11 days of the month of the other extreme (average temperature: -10.3C) Stats:

- month-time high: +9.9C on 7 January 2014

- month-time low: –17.5C on 25 January 2014

- the warmest day: 10 January 2014 (daily average of +7.1C)

- the coldest day: 25 January 2014 (daily average of –14.8C)

1 February 2014

Getting better. Single-digit frost at sunrise and howling wind is fading. Over the day sunny and temperature climbs towards –2C. Feels balmy.

2 February 2014

Relapse of freezing drizzle. –3C from dawn to dusk. Roads and pavements are again covered with thin layer of ice.

3 February 2014 – 7 February 2014

Thaw comes over. Over the whole week nights bring single-digit frosts, days are sunny and with temperatures above freezing. Getting warmer day by day. A few centimetres of snow linger by the end of the week.

8 February 2014

First frost-free night since four weeks. In the gloriously sunny, spring-like afternoon temperature peaks almost double-digits. No winter on the horizon, at least within the fortnight. And then? Last year in mid-February I thought any recurrence of winter would be short-lasting and fussy weather proved me wrong.

9 February 2014

Skies clear up before midday and day-time high reaches +8C. Pre-spring in the air…

10 February 2014 - 28 February 2014

Winter has fallen back for good. Over that period temperature does not drop below –5C, not a single snowflake is witnessed over the capital of Poland. The biggest mounds of frozen, dirty snow disappear after a week of thaw. Mornings of 23 February 2014 and 24 February 2014 bring picturesque freezing fog confining visibility to less than 100 metres. Bad weather for holidaymakers during the winter break in Warsaw (falling this year in the second half in July). Futile is the search of snow in Poland.

February 2014 was (only) slightly warm. Average temperature in Warsaw was +1.8C (vs. long-term average of –1.0C), higher than over recent 5 Februarys, but far from +3.6C reported in 2002 or +3.1C in 2008, not to mention record-high +4.6C measured in 1990. Stats:

- month-time high: +10.8C on 18 February 2014

- month-time low: –10.1C on 4 February 2014

- the warmest day: 20 February 2014 (daily average of +5.3C)

- the coldest day: 1 February 2014 (daily average of –5.8C)

First half of March 2014 fetched not a single scene of winter. Five mornings, precedent by cloud-free nights, greeted Warsaw with little frost (was no colder than –4C), but in the second decade, when warm mass of air from south-west drew in, temperatures in the afternoon reached +14C several times. The current weekend is blustery in chilly, but out of line with forecasters’ warnings, sleet was not witnessed in Warsaw. The coming weeks might still bring night-time frost or maybe even short-lasting snow showers, but the last gasp of winter was actually breathed over a month ago. Roll on spring and may such mild winters occur more often!

It’s all about the money...

And if it’s not about the money, most probably it’s about the power (unless also a woman is at stake) and in such context we should consider the recent events in Ukraine and in Russia.

The latter, as the fellow blogger Michael notices, is a hollow country. Its economic prosperity, reliant on ample, but finite resources of natural gas and crude oil, lacks sustainable foundations for economic growth and thus is fragile. Unfortunately, Western Europe is largely dependent on supplies of commodities from Russia, which drives its indulgent stance towards less and less civilised regime of Russia. Economic misery is though not what the nation of Russia fears. Over centuries of suppression by autocratic or totalitarian rulers, they persevered many periods of privation and are capable of withstanding another one. If supplies of gas and oil to Western Europe are cut off, they would wait it out, while the Western Europe would give in. More than bread, Russians need circuses. And more than circuses, they hanker after the great empire. They hark back to times of Soviet Union, leader of two meaningful political and military blocs in the world. They want their empire back, this is one of the reasons, why Mr Putin’s recent actions are popular with 80% of the Russians. Propaganda in the media does its bit, but even without it, many Russians perceive their president as the one with a historical mission to restore the might of the Soviet empire. By attempting to take over Crimea in a manner kind of similar to what was being done by Hitler in 1939 with the part of Czechoslovakia, he wants to make the history, as the one who would bring back to Russia the territory which over the centuries was a part of different realms and actually long could you quarrel who it belongs.

Regarding the Crimea issue, the uttermost question is “why now?”. The Russian majority have inhabited the peninsula for over 20 years since Ukraine regained independence and they would get on with the Ukrainians, enjoyed autonomy, no one heard of any meaningful clashes between Russians and Ukrainians. Being mindful of Russian propaganda machine, I would ask whether Crimea residents (true or recently resettled from Russia) are seizing opportunity to break free. If so, the most likely explanation is that they are grabbing opportunity of weakness of the Ukrainian state, for which they should not be condemned, if we bear in mind Poland gained independence in 1918 thanks for weakness of other countries. If so, they should break away with their own hands and establish a separate country, without any help from Russia.

Let’s face the truth, the Ukraine is weaker than ever over last two decades. When I look at the make-up of the new government, I’m not particularly fond of those people. When names of new ministers were read out in Maidan, the crowd booed some of them, little support was given to Yulia Tymoshenko who declared she would run for presidency in oncoming elections. The key problem of the country is that the heritage of the Orange Revolution has been squandered. The disillusioned nation chose, in democratic elections, Mr Yanukovych for president. Swapping a pro-Russian cabal for a pro-European cabal might change the direction in which Ukraine drifts, but will not move the country forward. I lean towards the opinion that none of the 100 richest Ukrainians should run the country, if it is to take a turn for the better. The wealth distribution in the Ukraine indicates the country is close towards the third world than to Western Europe. The small upper crust, hundreds of tycoons are holding billions of dollars in assets, while more than ninety percent of citizens every month struggle to make ends meet. There’s no, even fledging, as in Poland, middle class there and little prospects for such to emerge.

As an economist, I remain very sceptical about bright future for the Ukraine. The country lacks elite that could run the country and lacks sound institutional framework (rule of law, property rights protection, transparent legal system, etc.) that could spur economic growth. Politically unstable and, let’s face it, uncivilised countries need to offer high rate of return to attract to foreign investor, to compensate for higher risk; the risk which in worst case might materialise if foreign investors’ assets are confiscated in Russia.

Poland, to support Ukraine, is to grant development loans to its Eastern neighbour. As a guy who deals with creditworthiness evaluation, I would prefer a more straightforward move, i.e. giving them money, as we should not expect to recover it, or we should lend it and beforehand estimate what percentage of debt will be relieved. Ukraine lacks capacity to repay the debt. Of course, the foreign loans could be granted for pre-defined purpose of building institutional framework, but in free credit markets, lenders have right to control whether borrowers use loan proceeds for the stated purpose, and if not, call back loans.

We also should note money was what pushed Ukraine into the arms of Russia. The European Union gave little financial support to the Ukraine, while Russia offered this poor country a huge relief in form of much cheaper natural gas and financing public debt, not disinterestedly, but to expand its sphere of influence. With this all in mind, it should not come as a surprise Ukraine drifted towards Russia.

I hope the Crimea blustery does not develop into a full-blown military conflict. I consider this option unlikely, because it does not pay off for anyone. Mr Putin, using his soldiers “wearing uniforms that can be bought at any shop” will carry on with his muscle-flexing campaign, weak Ukraine will do nothing and EU leader will keep on expressing their deep concern over inconsiderate misconduct of the Russian president, fearing overstepping boundaries could spoil economic relations between their countries and Russia.

PiS-owska economic agenda

Judging by the timing of my postings and delay with which I refer to topical problems, it may seem I am slow off the mark. So instead of writing about mounting Ukrainian crisis, which gets closer to the verge of military conflict, I will refer to the headline-hitting, newly-published agenda of the leading oppositional party.

The document sets out to diagnose the current state of Poland as the utter downfall, to which Poland was plunged under the feckless rule of prime minister Tusk and names the current misery as “system Tuska” and then delineates how, when PiS headed by its leader, JarKacz, take over power, to lift Poland up from this misery and make the country thrive.

I am generally wary of all quick fixes – sort of easier-said-than-done solutions that would turn the country around within mere a few years, make it a land of milk and honey, inhabited by prosperous people, with expanding economy and well-run, efficient government. As a matter of principle, I give such diagnoses a miss. It takes little to make out what is wrong, it takes more wits to pertinently identify reasons why something does not work properly and the biggest challenge is to come up with feasible ideas to set things right.

I deliberately leave out what has been said by numerous critics of the agenda, i.e. PiS politicians promise to spend billions of zlotys, but fail to show how it is going to raise the money for: allowances for families, decreasing pension age, huge investments, health service, tax credits for entrepreneurs and in the meantime reduce public debt. I do not believe in policy of working miracles, because only a miracle could make ends of this agenda meet and I suppose no economically literate recipient of this document (or JarKacz’s speeches) would put stock in hollow promises as his whole story does not even appear to hang together. Even advocates of PiS policies admit widespread giving-out smacks of populism, but over-promising is an ordinarily used tactics even in mature democracies.

I will do my best to dissect all agendas of all political parties whenever they appear, and they should spring up in abundance before 2015 parliamentary elections. As PiS came up with its agenda first, its file came under fire first. I make no claims to be an expert in all areas of life, I generally know little about health service or military forces, but have some notion of economics and as a banking sector employee, am quite well-versed in its workings and limitations, therefore in my analysis I will focus only in the “Economy” section and drill down only some of those paragraphs I am capable of assessing.

The general diagnose on the current state of Polish economy (pages 73 – 74) is that it is stuck in low-growth trap, from which it can break out by unleashing the untapped development resources, with the help and co-ordination of the government, which should pro-actively engage in pursuit of economic policies.

The growth resources are simple and complex. The former are money Poland will receive from the EU funds and… (page 76)

Poza funduszami unijnymi maksymalnie uruchomimy znaczne środki własne i oszczędności przedsiębiorstw państwowych oraz wykorzystamy nadpłynność banków.

What are the „own funds” and how are they [PiS] going to make use of state-run enterprises’ savings and banks’ overliquidity? This all reminds me of acquisition of Lithaunian Mozeiku refinery by PKN Orlen in 2006, the purely political (buy it to spite the Russians) decision, taken, as with hindsight proven, without properly carried out due diligence. The refinery was purchased for 2.34 billion USD in 2006, while in 2013 PKN Orlen was weighing up whether to divest of the Lithuanian operations for 125 million USD. In the meantime, between 2007 and 2011 the oil producer recognised massive impairment losses, reflecting the fact the refinery was purchased well above its fair value. The business failure came to a pass also because, in the act of revenge, Russians cut off the pipeline running to the refinery due to a breakdown in July 2006, while negotiations regarding the purchase were still under way. This did not dissuade Polish decision-makers from pressing ahead with the purchase. Then, in 2008, Lithuanian railroads ripped off tracks running to the refinery, rendering it useless for months, as there was no infrastructure between the facility and the port in Klaipeda. The Lithuanian business began to break even in 2012. The estimated loss to the Polish taxpayers, counting in purchase of assets above their fair value, operating losses, costs of debt service and missed opportunities is estimated at 20 billion PLN, more than 2% of Poland’s general government debt. There are ample examples of flawed decisions on acquisitions made in the private sector, but there costs of management’s inflated ambitions (chief driver of such transactions) are borne mostly by the company’s shareholders, not by taxpayers.

I dread to think how the PiS government intends to crack down on overliquidity in the Polish banking sector. Is it going to coerce banks to lend money?

Zastosujemy także pozabudżetowy mechanizm inwestycyjny z zaangażowaniem aktywów spółek Skarbu Państwa, w tym spółki Polskie Inwestycje Rozwojowe i Banku Gospodarstwa Krajowego, a także specjalistyczne mechanizmy wspierania inwestycji, np. na wzór LTRO (Long Term Refinancing Operation – program Europejskiego Banku Centralnego) i programów proinwestycyjnych na Węgrzech.

Does the author know what LTRO consists in? The definition provided towards the bottom of page 76 does not closely match what I found through search engine. This is not an investment-supporting programme, but a liquidity-enhancing measure and is aimed at helping out banks having too many illiquid, poor-quality assets. Polish banks neither struggle liquidity squeeze, nor have portfolios of badly-performing assets, what is then the reason for application of such measure? As it was rightly noted, Polish banking sector has a problem of excess liquidity, totalling to 30 billion PLN.

When it comes to the banking sector, credit expansion towards SMEs is to be facilitated by guarantees issued by the state-owned bank (BGK, page 77)

Wzmocnienie możliwości gwarancyjnych polskiego BGK w granicach od 65 do 100 mld zł w latach 2015 – 2021 będzie rozwiązaniem bezpiecznym, niewymagającym nakładów ze strony państwa i neutralnym dla budżetu.

When making such move, you should be aware of two facts. Firstly, a bank which lends to a business against a guarantee issued by BGK bears effectively credit risk of BGK, because if a customer defaults, the bank has a claim on the guarantor. This means commercial banks need to have credit limits for BGK, which although not regulatory capped, are in practice limited by ceilings will be imposed by banks’ internal policies. Secondly, issuing guarantees necessitate raising equity to meet capital adequacy requirements, what, assuming BGK stays 100% state-owned, means the government would need to inject money to pay-in the capital, thus making the sentence above from the PiS agenda true, only if current own funds of BGK give enough headroom to issue guarantees in aforementioned amounts. On pages 77 and 78, the document says…

Polscy przedsiębiorcy prywatni ulokowali na rachunkach bankowych (w postaci lokat długoterminowych) środki rzędu 200 mld zł. Jest to znaczny zasób rozwojowy, a państwo ma obowiązek działać na rzecz jego uruchomienia poprzez stworzenie systemu zachęt inwestycyjnych w systemie podatkowym. W przygotowanym Prawo i Sprawiedliwość projekcie ustawy o podatkach dochodowych (PIT i CIT) znalazły się rozwiązania pozwalające na 100-procentową amortyzację nakładów inwestycyjnych w roku ich poniesienia, a w przypadku wydatków na badania i rozwój – nawet na podwójne odliczenie. Szacuje się, że po wejściu tych rozwiązań w życie w ciągu najbliższych 6–7 lat wspomniana kwota 200 mld zł będzie przeznaczona na inwestycje.

During my 3-years’ career I have never seen any company which put its excess money on bank deposits with term longer than 3 months. And mere tax credits are not a cure for businesses’ reluctance to invest. I could argue with more of the statements above, but as both the author of this part of the agenda as I lack strong backing in favour of our assertions, such argument would get us nowhere. Let’s turn to page 79 then.

Kolejnym instrumentem kumulowania złożonych zasobów rozwojowych będzie udomowienie banków. Będziemy wspierać działania upowszechniające polską własność w sektorze bankowym. (...) Pierwszym jest przyrost organiczny, czyli szybszy rozwój banków krajowych poprzez rozwijanie akcji kredytowej i zwiększanie depozytów. Drugi sposób polega na zakładaniu i rozwoju nowych instytucji opartych o kapitał krajowy. W tym celu muszą zostać wprowadzone preferencje dla małych instytucji, w tym spółdzielczych. Trzecim sposobem jest przejęcie banków opartych o kapitał zagraniczny przez podmioty krajowe zaliczane do sektora finansowego, w których Skarb Państwa ma znaczące udziały. Udomowieniu banków będzie towarzyszyła rozbudowa polskiej bankowości o zasięgu lokalnym typu hipotecznego, spółdzielczego lub kas oszczędnościowo-kredytowych. Udomowienie banków zwiększy zaangażowanie polskiego sektora finansowego w rozwój gospodarczy, szczególnie poprzez akcję kredytową, w tym udzielanie kredytów inwestycyjnych.

„Domesticating” the banks is not an entirely new concept. Of course, proportions of capital ownership can be changed by organic growth, but in line with previously mentioned capital adequacy requirements, in order to extend more loans, you need to shore up banks’ equities. How would it be ensured that holders of such equity would be only Polish entities? In order to overtake the risk-averse banks run from their head office abroad, lending standards would also have too be loosed, running the risk of severe losses in the economic downturn. Takeovers executed by state-owned banks are the most controversial idea. Firstly, it decreases competition and even without effective merger which could be blocked by competition watchdog (recall incomplete merger of Pekao and BPH in 2007?), control over the banking sector could be concentrated in one pair of hands. Secondly, it would cost billions of zlotys and if political goals are set above sound business reasoning, state-owned banks are likely to pay over the odds for their targets.

These are just a few examples of flawed or undoable concepts from the economic agenda of PiS. Apart from them it contains several questionable ideas, transferring free-market mechanism of economic self-regulation to the hands of the government and several good ideas, which, if properly implemented, could unleash potential of Polish small and medium companies and make business environment in Poland more friendly. Nevertheless, the approach to the economy is too statist for me. Too many control and co-ordination mechanisms are put forward. The government, whose areas of control or regulation are too wide, is unlikely to be lean, i.e. cheap and efficient.

I am looking forward to newly-released economic agendas of main political parties in Poland. When they are published, I promise to pick out incongruities and share them with you.